| Stock (Symbol) | Stock Price | |
Gilead Sciences (GILD) |
$74 |
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| Data is as of | Expected to Report | Sector |
April 28, 2014 |
N/A |
Healthcare |
| Sharek’s Take | ||
 The stock market’s been in a correction for weeks now, and that’s got investor attention. But hidden in the headlines was dazzling news from Gilead Sciences (GILD). Gilead’s Sovaldi proved to be a blockbuster in just its first quarter of sales, and the hepatitis C drug helped the company plow through past sales and profit estimates. Sales of the new drug were $2 1/4 billion last quarter, blowing past earlier estimates of $1 billion. Last year, Sovaldi was expected to sell $2 billion this year, and now the company sold that much in just one quarter! The fantastic results have pushed GILD’s 2014 earnings estimate from less than $4 to more than $6. GILD now sells for only 12 times earnings and the stock could double by the end of the year. |
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| One-Year Chart | ||
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| Earnings Table | ||
 Last qtr GILD had sales of $5 billion, double the $2.5 billion in the year-ago period. Profits more than tripled.The company trounced earnings estimates, making a profit of $1.48 vs the $0.80 estimate. Annual Profit Estimates surged! All across the board. Quarterly estimates flew ahead. This report is simply outstanding. |
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| Fair Value | ||
 And then after all that, the stock only sells for 12 times earnings. A P/E of 25 would mean a double in the stock price. Also, I took my fair value P/E down from 30 to 25 just to make these numbers more realistic. |
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| Ten-Year Chart | ||
 GILD went on a parabolic move on the anticipation of Solvaldi, but recently went into a little correction. The company used to grow profits rapidly 5-10 years ago, then went through a no-growth period, and now profits are surging again. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
1 of 27 |
Gilead was a deal at 22 times earnings last quarter and now its a steal at 12 times. Profits are tripling and the stock has now made a healthy correction. GILD os a;sp a healthcare stock, and those can do well even in tough stock markets. All systems are go. GILD surges to the top of the Growth Portfolio and Aggressive Growth Portfolio Power Rankings but it is not my biggest investment. Internet stocks have been beaten badly, so I don’t wish to sell low, and a market rally could cause them to surge higher. |
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Aggressive Growth Portfolio
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Here come the profits. 